Just-in-time or "planned materials delivery" of your inventory can save your school or campus in several ways that don't show up on a bid form. PUR-O-ZONE includes inventory "right-sizing" with most of its bids. Another term for this is Materials Requirements Planning. By not having to have everything come in at once to get best pricing, you can achieve some of these tangible benefits:
- Less cash involved up front. You are invoiced more in line when you need product. You still stock enough to cover minor supply-chain variations, just not 8-12 months in advance for a price break.
- Price protection keeps you from using square footage in the warehouse in advance of need. Quantity discount pricing is offered for purchase not on just one order, but across the school year.
- Delivery to individual schools. This feature means a significant cut in transportation to and from your central warehouse to individual buildings and labor costs including picking, loading, transporting and stocking supplies. Individual deliveries means no running back and forth from the central warehouse.
- Warehouse space reallocation. Carry about 1/6th of an annual supply through just in time delivery. 1/6th the space, 1/6th the outlay of cash and a reduced cost-of-money that doesn't leave your account months before it is required to provide necessary supplies. This reduction will undoubtedly affect the average dollar value of inventory in your warehouse and may therefore allow you to lower your insurance costs by having a lower risk to storm or fire.
- Product freshness. Janitorial stock delivered periodically means best possible quality, particularly with chemistry. However this also affects even items like paper, which humidity and temperature can deteriorate over time.
- Lower your fire load. The fire department rates your structures in terms of building fire load. Basically, fire load calculates what is the wood equivalent in terms of fuel if your average warehouse contents are added to the building materials should a fire break out. If you can cut paper and chemistry products by half or more, you will make an appreciable dent in your fire load. This reduction, in turn, may help you negotiate a better liability rate with your insuror.
- Better organization. Just-in-time delivery provides for a less-filled warehouse, which in turn makes access to stock, inventorying and organization easier. A less-filled warehouse may also be safer and require less stacking and forklift time.
These factors make a bid that includes deliveries to the individual buildings in your district or campus more economical in a number of ways than bids without them. PUR-O-ZONE understands school purchasing challenges and helps you structure your purchases accordingly.